The Houston Metro Housing market activity continues to drop on the heels of the US economic uncertainty, according to a report in HouseCanary. Yesterday, HouseCanary released its latest Market Pulse report, comparing data between July 2021 and July 2022.
Mike Durr, Kingwood Mortgage Guy reported in his podcast Better Credit Better Home, yesterday that he believes that the Headlines and reports of a substantial contraction in Real Estate Activity are over blown. Durr states that people are being affected by the higher interest rates and inflation in general.
But he see’s it more of a return to a more normal real estate market. Durr also states that we may be done with 20% home appreciation, but there is still not enough inventory to cause the kind of drastic change that the Headlines seem to predict. There are still a lot of people who want to buy homes, particularly in the Houston Metro area.
“In July, economic uncertainty and another steep interest rate hike from the Fed appeared to have impacted both seller and buyer behavior,” said Jeremy Sicklick, co-founder and CEO of HouseCanary. “On one hand, elevated rates have contributed to a decrease in new net listing volume, with would-be sellers sitting on high amounts of equity and locked-in low mortgage rates. On the other hand, demand has decreased also, due in part to the sharp increase in interest rates, which had deterred potential buyers.”
Durr states in the video Better Credit Better Home that the change in the market is going to favor buyers. It will give buyers more options. Buyers can go back to negotiating with sellers, requesting help with closing costs, asking for repairs that for the last year would have killed the deal with the home seller just moving on to the next buyer in line. And paying 10, 15, 20 thousand dollars over the asking price will be the exception as opposed to the rule.